tZERO to Develop Smart Contract Token for Rare Metals Sale

Private equity firm GSR Capital has contracted Overstock.com Inc.’s subsidiary tZERO Group Inc. to develop a smart contract token for a sale of cobalt.

tZERO and Hong Kong-based GRS Capital’s partnership is focused on developing an ecosystem in Asia for tokenized commodity purchase contracts that would purportedly improve the supply chain process of rare metals. Additionally, the parties are looking to launch a security token platform in the region, following compliance with relevant regulatory requirements.

Per the release, the token will be used for a sale of cobalt, and is expected to launch in 2019. The “first-of-its-kind cobalt offering” will include recurring tranches of electric vehicle battery-grade cobalt, with up to $200 million of the material to be available for sale.

Patrick Byrne, the Overstock CEO and tZERO executive chairman:

“smart contract automation of these transactions will significantly reduce overall costs while effectively improving transparency in rare earth metals purchases.”

However, in order to complete the project the companies are delaying a previously announced equity investment until the end of February, 2019.

https://cointelegraph.com/news/overstock-subsidiary-tzero-to-develop-smart-contract-token-for-rare-metals-sale